P&G: Case study
Key performance gaps
In 2005, the renowned pharmaceutical giant P&G was restructured into three interdependent global organizations, one organized by product category, one by geography, and one by business processes. During its earlier history, the company had been quite successful in generating synergy between knowledge and best practices. However, P&G had begun to lag in keeping up with customer demand in terms of generating new products and bringing existing products to the global market.
To achieve greater unity as a company while still respecting the needs of regional consumers, the company had been reorganized in 2005 into Global Business Units, whose primary responsibility was for product development; Market Development Organizations with a primary responsibility for market management, and a Global Business' Services unit responsible for managing internal business processes (Piskorski & Spadini 2007: 8). Each unit operated autonomously while Market Development Organizations (MOOs) localized P&G's national strategy (Piskorski & Spadini 2007: 9). A Global Business Services (GBS) unit had the responsibility to "standardize, consolidate, streamline, and ultimately strengthen business processes and IT platforms across GBUs and MOOs around the world" (Piskorski & Spadini 2007: 10). HR was also streamlined. However, the pipeline of products-to-market still lagged, and P&G's revenues continued to fall behind its rivals. Its stock price and overall
1. A small family was traveling in its van and had a minor accident. The children in the back seats were wearing lap belts, but still sustained numerous bruises about the abdomen, and had some internal organ injuries. Why is this area more vulnerable to damage than others? Name specific organs that would be injured, as well as the abdominopelvic quadrant and region in which they are found. What injuries might you suspect in the damaged organs?
The P&G community consists of nearly 98,000 people working in almost 80 countries worldwide. What began as a small, family-operated Soap and Candle Company now provides products and services of superior quality and value to consumers in 140 countries.
Those target markets who rely on Johnson & Johnson health and medical needs are mostly patients, doctors, nurses and civilians. Therefore, the company need to sustain their products and services over all these years to ensure that lower income people and underprivileged patients are able to access on their medicines. This however requires the company to balance patient’s access and competitive dynamics in line with their need as the company need to have enough resources to keep on being innovating, creating new and better medicines and at the same time making sure there will be a fair return to the shareholder as well. Johnson & Johnson also work closely with the governments, physicians, non-government organizations and the international donors all around the world to provide its products within an affordable prices to its
Describe the series of events that occur in skin, which is healing with the help of a skin graft?
One primary goal of Pfizer is to deliver sustained, excellent product by outperforming Pfizer’s competitors and must differentiate itself adequately from its competitors. Competitive advantage is central to strategic management in that it will produce and sustain superior performance. To be competitive in a business environment, often it requires the company to have a product or service different and better than other organizations competing in the same marketplace. According to Wadman (2007) “Pfizer and the rest of the pharmaceutical industry need to develop more sophisticated drugs, targeted at a smaller number of people more quickly, efficiently and at a lower cost” (p. 1). Once Pfizer’s strengths, weaknesses, opportunities, and threats are assessed and analyzed, managers must decide a set of strategies to reduce or eliminate its weaknesses and capitalize on its strengths and maximize opportunities. An example is Porter’s three generic strategy approaches of differentiation, cost leadership, and focus strategy by using differentiation strategies to differentiate Pfizer from its competitors. Strategies are essential; however, it is useless unless they are effectively implemented levels of the company. Business-level strategies are typically developed and implemented by heads of business units and are first approved by top management. The functional level strategy is the last level that focuses on developing strategies for managing the various departments to
Pfizer is the largest American pharmaceutical company and one of the largest pharmaceutical companies in the world. It competes with Merck and Glaxo, and markets such well-known medications as Celebrex and Viagra. However, the pharmaceutical industry as a whole has undergone changes in recent years with significant consolidation taking place and with increased scrutiny regarding the ways in which drugs are developed, tested and marketed. In addition, recent controversies have erupted regarding Merck's drug Vioxx, and Pfizer has been the target of unwanted publicity regarding its painkiller Celebrex. This research considers the strategic position of Pfizer, including its strengths and weaknesses as well
Opportunities for Pfizer exist in two areas, first being the restructuring into a more lean and competitive organization and second is the penetration into emerging markets such as China and India who are now more able to purchase their products. With sales of approximately $50 billion per year, Pfizer has the opportunity to streamline its operations, cut costs, and add flexibility to the organization. If successful in this, they can better realize their profits and invest that money into future competitive products for the market.
The key distinguishing features of Organization 2005 consist in the abolishment and reorganization of the Matrix structure around three interdependent organizations: Global Business Units (GBUs), Market Development Organizations (MDOs) and Global Business Services (GBS). Furthermore P&G implemented several policies that empowered executives in order to facilitate faster decision-making, which in turn should promote innovation and increased agility on the market.
P&G set up the newly reorganized global operations. I’m going to explain how the company works with its new global operations strategy and how P&G could push SK-II to world brand by using P&G’s target market – China, Europe, and Japan. By using the implement of Organization 2005 (O2005), the company is expected to have more annual growth rate together with less expense. P&G gives more compensation along with more responsibility tasks. P&G allows every employee in company to hold firm’s stock. P&G transferred primary profit responsibility from P&G four regional organizations to seven global business units.
Building on its success with the strong regional organization in Europe, P&G replaced its International Division with four regional Entities that assumed responsibility for profitability:
Analyzing the industry structure that Pep Stores is part of. What was the strategic position that Pep Stores has chosen in this industry?
Establishment of implementation plans in the company has been documented to address the strategic processes it carries out, and to guarantee a solid relationship between the company's pharmaceutical producers, suppliers and consumers. Implementation plans in Pfizer is carried out a sourcing process that offers reliability in confining to a common framework. The framework provides consistency and supports the company to do away with redundancies and espouse practices advocating for optimization of costs and streamlined efficacies. Similarly, planning and implementing the strategic plan at Pfizer ensures that it achieves its long term goals. It has
This project is the final of three reports I will complete as part of the strategic analysis of Pfizer. This report focuses on strategic implementation and includes the following sections. First, the major concepts related to strategy implementation will be defined. Second, those concepts will be applied to the case of Pfizer in order to analyze its corporate governance, organizational structure and strategic leadership. The analysis of Pfizer will be followed by its evaluation to identify the major problem the company is facing and propose a solution. A short conclusion will close the report.
Moreover, one may be able to find more potential business partners in exporting to other countries. One may find a business partner that is willing to cater to and audience of Pfizer’s pharmaceutical products from another country.